Shirley’s insurance coverage in jeopardy

March 28, 2013

CHARLES TOWN - After an initial motion was filed and denied in federal court, the West Virginia Counties Group Self-Insurance Risk Pool has filed a motion in Jefferson County Circuit Court requesting relief of obligation to defend or insure former Sheriff Robert "Bobby" Shirley in his civil case.

Attorney James C. Stebbins, the same lawyer who filed the federal suit, filed the motion on behalf of the insurance pool for West Virginia county governments, which is seeking to disown itself from the case.

However, the federal motion, which was dismissed by district court Judge John Bailey, stated it was the responsibility of the insurance company to provide coverage despite the series of events that ultimately led to Shirley's resignation.

"The court found that the problem with allowing intervention for this purpose is that the issue of insurer liability 'is not related to the subject matter of this action between (the plaintiff) and the (insured defendant),'" the order denying intervention states.

The new motion states the risk pool wants "leave to intervene to assert declaratory judgment complaint," and asks the circuit court to find that it is not required to defend or insure Shirley for punitive damages in the civil case.

Shirley resigned in January, not long before he pled guilty to a federal civil rights violation in Martinsburg's U.S. District Court in connection with the Dec. 27, 2010, beating of bank robbery suspect Mark Daniel Haines, of Harpers Ferry.

After the incident, Haines filed suit against Shirley claiming that Shirley kicked him several times in the head, stomped on his face, and inflected other harm upon him.

Haines is seeking damages from the incident along with other fees of Shirley and deputies Joseph Forman and Terry Palmer, all of whom sought protection in compensation and defense from the West Virginia County Risk Pool.

The risk pool has been providing defense for each of the officers under a coverage contract between the insurer and the Jefferson County Commission.

"Defendant Shirley sought a defense and indemnity for the allegations in the Underlying Lawsuit from the WV County Risk Pool which has been providing a defense to him," the motion reads.

According to the motion, the insurance coverage does not apply to fraud and dishonesty brought on by the covered person.

"WV County Risk Pool has no duty to continue to defend Defendant Shirley with respect to the allegations in the Underlying Lawsuit," the motion reasons.

The former sheriff faces a maximum of 10 years in prison and a fine of up to $250,000.